PERTH (miningweekly.com) – All conditions precedent to the A$350-million transaction between ASX-listed Gold Road Resources and mining major Gold Fields over the Gruyere project, in Western Australia, have now been met.
Gold Road told shareholders on Thursday that the completion of the 50% sale in the Gruyere project to Gold Fields, would be completed on December 13.
Under the joint venture (JV) agreement, announced last month, Gold Fields will buy a 50% interest in the project for A$350-million in cash, comprising A$250-million payable on the completion of the transaction, and a further A$100-million to fund Gold Road’s initial cash calls during the construction phase.
A 1.5% net smelter return royalty will also be placed on Gold Field’s share of production from the JV tenements, once total gold production exceeds two-million ounces.
Further, an assumed liability will be undertaken by Gold Fields for up to a 10% overrun on the Gruyere initial development programme and budget of A$507-million, subject to certain exceptions such as overruns owing to a force majeure event.
Gold Fields will also provide funding support for any project-level bonding or guarantee requirements.